As weather sizzles, Mitsubishi Electric leads growth in Thai aircon market
BANGKOK, NNA – Major Japanese electronics firm Mitsubishi Electric Corp. is leading growth in the air condition market in Thailand, with increasing sales outpacing the average market growth rate.
Driven by robust sales of its air conditioners during the scorching summer last year, Mitsubishi Electric Kang Yong Watana Co. (MKY) is set to achieve a 7 percent year-on-year gain in the current financial year ending in March, said Managing Director Yasushi Moriyama on Wednesday.
The Thailand unit of Mitsubishi Electric, which commands the largest share of the domestic aircon market at an estimated 33-35 percent, expects to rack up 15.5 billion baht ($495 million) in overall sales in FY2019, with aircons accounting for 60 percent and other home appliances taking up 30 percent, said Moriyama at a press conference in Bangkok.
This year, MKY plans to launch new inverter air con models with high-speed cooling and particulate matter 2.5 filtering functions to stir demand, said Takashi Fujiki, director and executive general manager for Marketing & Sales Division, at the event.
PM2.5 refers to harmful fine particles polluting many places around the world including Thailand where worsening smog in recent months has led to closure of schools and protests.
The Thai sales unit aims to achieve 10 percent in aircon growth in FY2020 starting April. It reckons the entire market will rise 6 percent, from about 30 billion baht to 31-32 billion baht if summer temperatures from March to May go sizzling high again, said Moriyama.
As for overall sales of its appliances, MKY is eyeing a growth target of 8 percent or 16.7 billion baht as it will launch new refrigerators and electric fans with energy-saving features, Moriyama added.
He believes the growing awareness of environmental issues among Thais will help offset any impact from the coronavirus outbreak on the already slowing economy caused by the U.S.-China trade dispute, he added.
To buttress sales, MKY is enhancing after-sales services and expanding round-the-clock repairs nationwide with an investment of 30 million baht, Deputy Managing Director Praphon Potivorakun told reporters. Managed by a call center, such convenient services are only available in metropolitan Bangkok area currently.
MKY also launched a logistics 'Smart Hub' in Lampang city recently to provide prompt deliveries to 12 northern provinces.
In addition, MKY has set aside 1.05 billion baht for marketing as it is putting "greater focus on online marketing,” said general manager Fujiki.